Monitor, the independent regulator of NHS foundation trusts, has found that Poole Hospital NHS Foundation Trust is in significant breach of the terms of its Authorisation.

This decision is based on concerns around the Trust’s financial position and its governance arising from its performance in 2009-10, when the Trust reported a deficit of £4.5 million (before impairments) against a planned surplus of £2.1 million.

Having considered the available evidence, Monitor has decided not to use its formal powers at this stage. However, the Trust’s performance going forward will be reviewed against specific milestones; if it fails to demonstrate timely progress towards full compliance with its terms of authorisation, Monitor is likely to consider formal intervention.

David Bennett, Interim Chief Executive of Monitor, said:

“Monitor’s job is to make sure foundation trusts are well run on behalf of patients and taxpayers. If problems occur, we make sure they get fixed. We believe it is important that problems are being identified and addressed, not concealed.

“As a rule, Monitor wants foundation trust boards to resolve their own problems – we consider them to be the front line of regulation, responsible for understanding the cause of problems and taking action to deliver solutions. But if they fail to do this, we will use our statutory powers to intervene.

“The focus is now on the future and taking the actions necessary to ensure the continued provision of high quality patient services from a secure financial platform. Monitor has considerable experience of working with foundation trusts with serious financial problems that have been successfully resolved. We will be working closely the Board at Poole Hospital to achieve this.”